Redefine Properties readies prime S&J site for development
Published: 26 July 2017
Johannesburg, South Africa – 26 July 2017: JSE-listed diversified real estate investment trust Redefine Properties (JSE: RDF) has announced that one of its largest industrial developments to date, the 1.6 million m² S&J industrial estate in Germiston, is on track, with bulk infrastructure currently being rolled out. The prime site is majority owned by Redefine Properties together with Abland.
Redefine Properties has committed R154 million for the bulk infrastructure to date. The S&J Industrial Estate, once part of the larger Simmer & Jack mines, spans over 163 hectares of developable land, located along the N3 highway adjacent to the Geldenhuys interchange. To be developed in a phased manner, the initial phases will all come up neighbouring Gosforth Park.
Forming part of the greater bulk services project, construction on the two main roads within the estate has started. Once complete these roads will unlock 118 hectares of developable land of which approximately 60% will be available for disposal to end users.
The development rights secured can accommodate manufacturing, logistics and commercial uses and includes the opportunity for a fuel station as well as a convenience retail centre within the node.
S&J will feature urban design that seeks to improve the landscape value of the estate while retaining and celebrating its heritage. Elements like the winding house dating back to the 1950s, left behind by the mine will be incorporated into the aesthetics of the estate.
With a focus on logistics and light manufacturing, businesses operating from the new estate will be able to circumvent the congestion that frequently occurs at Gillooly’s interchange when traveling from and to Durban Port and inland destinations.
“The acquisition meets Redefine’s strategy of identifying quality property opportunities in desirable nodes, enabling the business to secure strong lease covenants. We have received enquiries for over 380 000m² in industrial land sales and development. We expect market interest to increase further once the major bulk services and roads, due for completion early in 2018 are established,” says Johann Nell, National Asset Manager, Redefine Properties.
Located amidst the burgeoning commercial and residential areas of Germiston, Bedford View, Meadowdale and Alberton, the well-connected site once fully developed is set to create over 5000 new jobs as well generate a substantial rates and taxes injection to the Ekurhuleni metro.
“The project greatly improves the chances of skilled and semi-skilled workers in the immediate area of getting work in the construction as well as logistics sectors,” says Jaco Strydom, Project Manager, Abland.
The S&J site is registered as a Strategic Urban Development (SUD) project with the City of Ekurhuleni. Under the auspices of SUD, the City will collaborate with registered SUDs at a strategic level to facilitate development.
“The accessibility and location of the site makes S&J an ideal gateway to the OR Tambo Aerotropolis corridor mooted to attract strategic investments in key economic sectors, including manufacturing and centralised logistics.” says Nell.